No Investment Goes Straight Up…

By Silver Shield, on April 6th, 2011

… except in a mania.

I have been a little at odds with the professional trading community about silver. These traders make money on trading trends, Fibonacci numbers and Elliot Waves. I have heard countless experts claim that they interpret secret signals that the markets tell them. There are all sorts of gurus and programs that sell the dream of fiat riches. For the most part, they remind me of witches of old, rolling chicken bones and divining the future for gullible kings.

These trading theories may have merit in a free market, but the world we live in is anything but that. Take the measuring stick of all financial transactions, the dollar. The dollar itself is a highly manipulated idea that knows no limits. The dollar can be created or destroyed at will of the Power Elite that control our world. Through the Fed manipulating interest rates, back door bailouts, plunge protection, toxic asset cleansing, and being the buyer of last resort of the entire United States Debt, there is no limit to the amount of dollars that can be created. How can we begin to measure the value of an asset, if our measuring stick is corrupted?

Since there is no sense of what the dollar is, there is no reality in the markets that are since they are measured in dollars. All paper assets rest upon the illusion of the dollar/debt. What is your house worth if there is no 30 year mortgage? How do you value bonds, if the Federal Reserve is the buyer of 80% of the bonds sold? What is the valuation of a company if earnings are manipulated? What does the US Economy look like, if we no longer have the world’s reserve currency? How do we consume 25% of the world’s oil, if we can no longer fund the trillion dollar a year Military Industrial Complex? Throw on top of all of this, quadrillions of Wall Street Derivatives and trillions of unfunded liabilities. These traders are literally betting on an illusion, trapped in a deception, wrapped in an enigma.

I postulated in my article the Silver Rocket that silver is in the early stages of a mania phase. This phase is where the public starts buying and buying, because they see only blue sky in the value of an asset. I think we are in a mania phase for a couple of reasons…

The public has been burned so much in the stock and housing bubbles that neither of those markets are going to recover for at least a generation.

The fundamentals of silver are not only so strong but that there is not any other assets class that even begins to come close to it. Silver is going to become very popular, very fast.

The silver market is so small, that any amount of serious money coming into this market is going to send it to the moon. (There is only about $1.5 billion in silver supposedly on the CRIMEX, how much is there in the Stock, Bond and Real Estate Markets world wide?)

During the last run up in the precious metals in the late 70’s, only about 10% of the world could buy gold and silver. (North America and Western Europe. There is ten to twenty times as many people that can buy this time around.)

There is also about 10 times more fiat currency in the world since then. People are much more of the investor mindset now then back in the 70’s. (Can you image Fast Money or Jim Cramer in the 70’s.)

There is NO major stock piles anymore. (No Central Banks own silver and the US strategic stock pile is gone.)

Silver is a vital industrial and strategic metal.

The Monetary demand is unlimited and one that is just now starting to grow.

The Eight largest banks are short 150 days of global mining production of physical silver to support their illusion, trapped in a deception, wrapped in an enigma power.

No investment goes straight up… except in a hyperinflation.

Finally, the death of the dollar is a mathematically inevitable event. Always remember this little truism; debt/money needs to be created every year in excess of the Debt AND Interest accrued the previous year or the whole game falls apart. The Elite know that a deflationary spiral threatens their power and any whiff of deflation is met with massive money printing. If you know anything about compounding interest, you eventually will see the hockey stick.

The Fed is the Lender of last resort and gets its power from creating debt/money. The Government is the Spender of last resort and gets it s power from spending money/debt. This sick symbiotic relationship will bring about the destruction of the world economy. The Elite always err on the side of inflation also because they derive their power from inflation while it crushes the power of the middle class that they view as a threat.

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” – Vladmir Lenin

As inflation increases, all assets will rise in value. But it is very important for you understand is the difference between nominal and real value. Nominal value is simply the numerical value of the asset going up in value. Real value relates to the real purchasing power after you strip away inflation. If an asset goes up in value say 10% and inflation is 0% then you made 10% in nominal and real terms. If your asset went up 10% and inflation went up 20%, you may have made 10% nominally but in real purchasing power you lost 10%.

The rush away from all paper assets into real tangible investments like silver will coincide with massive money printing as the Power Elite try to keep power. So here you have a scenario where there is a mania in an asset coinciding with a world wide hyper inflation. Can you imagine shorting silver in this market? Even trading it to me is a scary prospect because at some point you may sell and not be able to buy real silver.

"I should have listened to Silver Shield and NOT Bob Moriarty!"

Even I have been tempted to use leverage/debt to go long on silver. I refuse to give the Elite one dollar of control over me. I have read many articles on how the Hunt Brothers got taken down by the banksters by raising margin and interest rates to squeeze them out of the market. While I do not think they can do it again this time around, you never know. I also don’t know when or if the Government may freeze all assets like they did in Argentina and all of your gains get wiped away through government control. I have come up with a plan to make tax free generational wealth after the collapse of the dollar. The important thing is that you have the wealth that gets through the crash safely first.

At the end of this mania and hyper inflation, there will be a new paradigm from which all of humanity will set about rebuilding a new civilization. Nothing is certain, but my guess is that we will either have a new dark ages or a new Renaissance. Look back throughout history and ask yourself what asset class would you trust when the world is turned upside down?

Silver is a huge key to generational wealth, if you understand the whole game. If have not joined the free and member supported Sons of Liberty Academy, please do so now. Our motto is, “when you are aware, you can prepare.” I feel it is the best educational experience you will ever have. Join the thousands of aware individuals that are setting about to change the world for the better. Our community will either be at the forefront of the fight against tyranny or be the best positioned group of investors the world has ever seen. Either way you need to join.

12 comments to No Investment Goes Straight Up…

Hey Chris,
Based on your silver rocket chart, what is your personal guesstimate of what the silver value will be in U.S. dollars at or near the “new paradigm” level at the top of the parabola?
And do you care to share more about your plan for tax free generational wealth?

I don’t have a dollar guestimate of silver price. I will look for silver ratio to get to single digits with gold. Or a the double digits with the DJIA. Or a couple of hundred ounces of silver for a house.

The tax free plan is in Module 10 of the free Sons of Liberty Academy…

Dear Chris: You need to change your paradigm. Government is not the solution, it IS the problem. On a daily basis we are all anarchists. We trade with each other without the permission of the state. We don’t need big brother, he needs us! Practical free trade is easy. It was done in America before we got rid of the King. We made the fatal error of thinking that limited government was a possibility. It is not. Rothbard and co. were right.
Keep up the good work, but keep an open mind. Old guy!!!

Your article is very confusing. First you are all pro-Silver but then you create this graph showing that Silver is entering into a mania phase and then there will be a massive bubble burst and capitulation. This is theoretically impossible. The USA government would have to significantly raise revenue and cut spending and then have money left over to pay down the debt in order to rebuild the Dollar. I don’t see this happening ever.

Get rid of that large graph showing silver prices reaching an apex and then experiencing a massive burst and bust.

In a normal mania assets explode up and eventually crash. My contention is that we are experiencing a mania but since it is coinciding with a world wide fiat currency collapse it will end not in a collapse but a new paradigm where silver will be money and everything will be related to it and not dollars.

I’m a silver bull. However, I’ve been thinking about selling my silver recently. If I am a bull then why do it you may ask? The world is waking up to inflation, the federal reserve, and the central banking cartel.
It is my believe the repubs will negotiate with the dems and are going to give us a “show” of fiscal restraint. The fed will not announce a QE3 and deflationary forces will once again drive price of commodities off a cliff. Summer/Fall will be the time to buy. THE LAST TIME TO BUY. This will be everyone’s last chance to get silver, while it is affordable before it spikes to the moon in 2012. I know it’s risky but this is how I think this thing is going to play out. They are very sneaky and they try to always keep us guessing…everyone is assuming QE3 right away…but I think they are going to wait for deflation to terrify the markets.

The feds ,can not afford to have deflation,so they will,keep bailing out banks in europe,sending more troops to middle east.the final destination will be Saudio Arabia.
cutting deficit is a hoax to keep the media and congress busy.the cuts will not exist if you keep printing and printing.Dollar will collapse ,and we will need to sell our silver in the future.Nothing goes up in price forever.if it does with 1 OZ you will buy the world.economies run in cycles.then it will be real estates,or stocks, and then the cycle of gols and silver will be undervalued,and then we must buy again but this time as smart money investors,”buying low and selling high”
we must buy gols at 200 dollars an ounce,wait 7 years and do the same.that is a simpkle plan but it is what rich people does all the time!

My only concern with selling silver is if we use it in industry so much then what makes you think it will tank at some point? Besides bank manipulation.. Other then that it should stay at a very high value for a very long time because it will eventually be SUPER RARE!! So why do people ever assume to eventually swap silver for gold when the ratio is neck and neck? We live in the fricking Matrix right now basically.. So whose to say the ratio in gold and silver won’t completely reverse.Once we finally have a free market.. All in all I’m going to keep what I have for a very long time and hopefully just milk it..

[…] the case that we are in the very early stages in the mania stages of the silver market. I said that no investment goes straight up unless it is in a mania or a hyperinflation. I called the recent rise in silver merely a orderly […]

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